After tallying the receipts for their first year of operation, the owners of the Taco Barn are
Question:
After tallying the receipts for their first year of operation, the owners of the Taco Barn are encouraged. Sales of their artisanal tacos, made from such exotic ingredients as ground beef, cheese, and beans, have been strong and seem to give hope to the coming year. Taco sales by month are shown in the table.
January - 474
February - 485
March - 501
April - 588
May - 579
June - 673
July - 594
August - 679
September - 608
October - 699
November - 732
December - 732
Armed only with his fingers, the owner decides that the safest forecasting approach is a weighted moving average using 0.6, 0.3, and 0.1 for the most recent three. Generate a forecast for the year using this technique and then calculate the forecast errors using MSE. What is the mean squared error for this forecasting approach?
A) 5033
B) 3960
C) 4076
D) 3466
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson